In general, one of the results of free trade is that the owners of domestically:
A. scarce factors of production lose due to increased competition.
B. abundant factors of production lose from increased demand.
C. scarce factors of production win due to increased consumers.
D. abundant factors of production win from decreased demand.
A. scarce factors of production lose due to increased competition.
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Explain dumping
What will be an ideal response?
The ABC Company manufactures routers that are used to provide high-speed Internet service. ABC sells an average of 1,000 routers each month, but to exhaust economies of scale in its industry ABC would have to sell 3,000 routers each month. Therefore
A) ABC is experiencing diseconomies of scale. B) ABC is experiencing diminishing returns. C) to reach minimum efficient scale ABC would have to sell at least 3,000 routers each month. D) ABC will soon go out of business.